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Eroding U.S. Industrial Base Comes With Price
Magic City Morning Star ^ | Feb 8, 2006 | Diane M. Grassi

Posted on 02/08/2006 8:15:08 AM PST by hedgetrimmer

The United States of America has historically enjoyed self-sufficiency in times of both war and peace but in order to better assess its present place in the world as concerns its military and economic strength, it is important to reflect on its foundation. There is daily talk from Wall Street to Capitol Hill with respect to spread sheets and global policy, but it perhaps falls short when it comes down to addressing the average U.S. wage earner, and how both will ultimately affect jobs and the country’s national security and defense. It is important to note, that as our forefathers were fighting for independence from England during the Revolutionary War, seldom do we hear about the underlying and overwhelming task they endured in order to supply an army without an industrial base. In order for success, the Colonies depended upon France and the Netherlands for everything from blankets and clothing to gunpowder, muskets, munitions, and food. Benjamin Franklin bartered a deal with France to ship across the Atlantic Ocean by way of the Netherlands’ St. Eustatius Island, in order for George Washington and his troops to have the means to defend themselves.

In light of the French Revolution at the turn of the 18th century, when the Netherlands were seized by Napoleon and President John Adams came close to war with France, a primary U.S. ally just years earlier, self –sufficiency was the order of the day. In 1791, Alexander Hamilton, the first U.S. Secretary of the Treasury, was asked by President George Washington and the U.S. Congress to officially document U.S. policy on industrial and military self-sufficiency. It read, “Not only have the wealth, but the independence and security of a country, appear to be materially connected with the prosperity of manufactures. Every nation, with a view to those great objects, ought to endeavour to possess within itself all the essentials of national supply. These comprise the means of subsistence, habitation, clothing and defense. The possession of these is necessary to the perfection of the body politic: to the safety as well as to the welfare of the society.”

The Industrial Revolution of the 19th century secured the U.S.policy of self-sufficiency, transforming it into a global power. Due to the strength of its industrialization the U.S. was able to defeat its enemies in World War I. With the advent of the automobile, which Henry Ford learned to mass-produce, weaponry and machinery produced for World War II benefited from the automobile factory. Production of Sherman tanks, Army jeeps, airplanes and PT boats evolved from such civilian U.S. factories. And in the 1950’s the industrial base was modernized for the Korean War effort.

The industrial base and manufacturing for the U.S. military were necessarily intertwined. But following the end of the Cold War there has been a deliberate decomposition of U.S. industry, unprecedented in American history. There are a number of factors which have contributed to U.S. dependence on foreign trade, primarily with India and China, which has not only led to millions of U.S. manufacturing and engineering jobs permanently lost, but paints a grim picture for the long term stability of the U.S. military supply line.

The dependence on foreign oil and the subsequent OPEC oil embargo in the 1970’s, the U.S. policy of deregulation of corporations of the 1980’s, the passage of the North American Free Trade Agreement (NAFTA) in 1994, and the World Trade Organization (WTO) in 2001 allowing China to become a member, collectively accelerated U.S. dependence on cheap labor offshore. Thus, dependency and reliance on suppliers from all over the world for military equipment and machinery components and parts, required for their manufacture, leaves the U.S. vulnerable.

The Defense Department runs a program called the Diminishing Manufacturing Sources and Materials Shortage (DMSMS) at the Tank Automotive and Armaments Command (TACOM). Its purpose is to identify shortages of parts, processes and materials necessary to procure for military buyers. A problem for military acquisitions has been procuring weapon system metal castings as a direct result of plant closings. The majority of castings now come from China and other third-world countries. Along with the foreign dependence on metal castings manufacture its research and development also followed the foundry industry offshore.

DMSMS program managers are aware that there are problems in finding sub-parts and components. Not only have replacement parts started to rapidly diminish, but the chemicals needed in their manufacture have as well. Without specific chemicals certain processes cannot be done. For example, there is only one company left in the U.S. that produces a roller cutter for armored plate or heavy steel which was an indirect consequence of supplying armor kits for U.S. Humvees in the War in Iraq. When the Pentagon learned there was an immediate need at the end of 2004, it called for expediency in their manufacture. Sadly, it took almost a year due to the limited facilities producing such.

Another issue arose when a foreign corporation purchased the only U.S. company which produced a chemical used for a common binder which secures windows and aluminum panels in aircraft. The company eventually folded when it could not meet Occupational Safety and Health Administration (OSHA) and Environmental Protection Agency (EPA) standards. Now the U.S. must depend on the company’s offshore subsidiaries.

Similarly, the bearing industry which produces ball-bearings, roller-bearings and anti-friction bearings is an endangered U.S. industry, key to the production of military gear and plays a part in homeland security. They are components necessary to produce electric motors for conveyor belts such as in factories, steel mills, in airports, in mining, and with the equipment used to manufacture automobiles. And bearings are critical to the mechanical components of major weapons systems. Losing bearings manufacturing to foreign shores directly impacts the capabilities of weapons manufacturing should there be a change in the geopolitical landscape and a cut-off from U.S. suppliers, whether through war, terrorism, or Mother Nature.

With the military build-up of China over the past decade by benefit of applying commercial technologies to military weaponry and its having become the largest offshore manufacturing base for U.S. corporations, the U.S. continues a delicate balancing act with a Communist nation as its biggest trade partner. With a U.S. trade deficit with China reaching over $200 billion in 2005, multi-national corporations, once U.S. companies operating in the U.S., are now just based in the U.S.

And with a demand by China for foreign direct investment as their incentive to buy U.S. products, companies like Boeing are acquiescing by not only building major portions of airplanes in China, but also creating Research and Development opportunities for Chinese engineers, in order to show its commitment. Intel and Microsoft have also followed suit with major investment in directly hiring engineers in China.

Endless conflicts of interest abound when it comes to foreign dependence in order for the U.S. to maintain its infrastructure, electrical grid, military weaponry and supplies, air travel and homeland security, to name a few. When smaller U.S. specialty industries vital to the industrial base become extinct on our shores, they now appear huge in a world where alliances are tenuous at best. A global economy at the expense of U.S. sovereignty, security and standard of living is something that the Colonists would not have stood for. They would have found another way. Maybe America still has time to do the same.


TOPICS: Business/Economy; Constitution/Conservatism; Culture/Society; Foreign Affairs; Government; News/Current Events
KEYWORDS: china; dependency; infrastructure; manufacturingbase; sovereignty
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Losing bearings manufacturing to foreign shores directly impacts the capabilities of weapons manufacturing should there be a change in the geopolitical landscape and a cut-off from U.S. suppliers, whether through war, terrorism, or Mother Nature

Take heed.
1 posted on 02/08/2006 8:15:11 AM PST by hedgetrimmer
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To: hedgetrimmer

More BS nonsense from the Hysteric Economic Isolationist crowd. Same song now they have ung since the 1980s. It's nonsense.


2 posted on 02/08/2006 8:16:58 AM PST by MNJohnnie ("Vote Democrat-We are the party of reactionary inertia".)
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To: FlyLow; Semper Paratus; nickcarraway; Bald Eagle777; Iscool; ETERNAL WARMING; chemainus; randog; ...

China and security PING


3 posted on 02/08/2006 8:17:25 AM PST by hedgetrimmer ("I'm a millionaire thanks to the WTO and "free trade" system--Hu Jintao top 10 worst dictators)
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To: MNJohnnie; All

Same crap I heard when Reagan was President...


4 posted on 02/08/2006 8:17:50 AM PST by KevinDavis (http://www.cafepress.com/spacefuture)
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To: hedgetrimmer

We do not need one single law restricting trade to renergize our industrial base. All we need to do is eliminate socialist enviormental laws, socialist taxes, and socialist labor laws. With these additional freedoms the rest of the world wouldn't be able to compete with us for 2 seconds.


5 posted on 02/08/2006 8:18:43 AM PST by CyberSpartacus
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To: hedgetrimmer

Yes, Washington fiddles while America burns. Nothing new. The priorities and politics of Washington continue to erode the soverignty and integrity of America.....just take the oil dependency issue, for openers. And I work in an industry that directly supports the bearing industry -- it is ugly when you see where much of it is going.

Thank You, Washington DC...


6 posted on 02/08/2006 8:19:07 AM PST by EagleUSA
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To: hedgetrimmer

this is the insidious factor that has been neglected and denied for too long......the liquidation of America, to put it bluntly.


7 posted on 02/08/2006 8:19:42 AM PST by Vn_survivor_67-68
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To: hedgetrimmer

First and foremost how do we defend ourselves in time of war if our defense materiales are made overseas. Second, there are only three ways that wealth is created, manufacturing, agriculture and mining. We have been outsourcing the first two for the last 20 years.


8 posted on 02/08/2006 8:19:56 AM PST by tom paine 2
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To: CyberSpartacus

All we need to do is eliminate socialist enviormental laws, socialist taxes, and socialist labor laws. With these additional freedoms the rest of the world wouldn't be able to compete with us for 2 seconds.
----
Agreed. But Washington again FAILS US, as usual.



9 posted on 02/08/2006 8:20:04 AM PST by EagleUSA
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To: tom paine 2

Hey, if we can get wages down to 2 bucks a day, nothing can stop us.


10 posted on 02/08/2006 8:21:14 AM PST by Wolfie
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To: hedgetrimmer

I just don't get why this nation feels compelled to give up its power?? Everything overseas, makes us vulnerable to lots of major problems. We cannot control quality, quantity, or anything else of the product.


11 posted on 02/08/2006 8:21:40 AM PST by television is just wrong (Our sympathies are misguided with illegal aliens...)
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To: MNJohnnie

I dunno. Try to buy an inpact wrench or any other pneumatic tool thats made in the USA. Hard to find, some are assembled here from "Globally sourced parts". I do believe that such tools are neccesary for the construction and maintenance of ships, aircraft and armored vehicles. We are screwing ourselves in any long term war..


12 posted on 02/08/2006 8:22:45 AM PST by wildcatf4f3 (the friend of my enemy is my enemy)
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To: tom paine 2
Second, there are only three ways that wealth is created, manufacturing, agriculture and mining. We have been outsourcing the first two for the last 20 years.

And yet we still manufacture more than ever. We produce more food than ever.

13 posted on 02/08/2006 8:23:34 AM PST by Toddsterpatriot (Waiting for Paul Ross to be right about anything.)
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To: MNJohnnie
More BS nonsense from the Hysteric Economic Isolationist crowd. Same song now they have ung since the 1980s. It's nonsense.

You are the final word on this because___________

14 posted on 02/08/2006 8:25:31 AM PST by lewislynn (Fairtax = lies, hope, wishful thinking and conjecture.)
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To: hedgetrimmer
One of things articles like this always overlook is that the high-tech nature of modern warfare has made large-scale industrial production of military hardware basically obsolete. Having the industrial capacity to produce warships is pointless in an age when the U.S. military could sink an enemy nation's entire naval force of several hundred ships in about 45 minutes.

If a military effort of the same magnitude as World War II were fought today, it would last no more than a week.

15 posted on 02/08/2006 8:25:42 AM PST by Alberta's Child (Leave a message with the rain . . . you can find me where the wind blows.)
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To: MNJohnnie
Same song now they have ung since the 1980s. It's nonsense.

That song has been around a lot longer than that.

16 posted on 02/08/2006 8:26:51 AM PST by Graybeard58 (Remember and pray for Sgt. Matt Maupin - MIA/POW- Iraq since 04/09/04)
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To: CyberSpartacus
You beat me to it.

Make "right to work" national policy, and a good part of the problem is solved.

Rein in the greenpeace type wackos and the legal profession and the rest is done. Capitalism works. Socialism just staggers from one low to another.
17 posted on 02/08/2006 8:27:21 AM PST by bill1952 ("All that we do is done with an eye towards something else.")
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To: Alberta's Child; All

Espcially in this day and age of Nuclear weapons...


18 posted on 02/08/2006 8:28:45 AM PST by KevinDavis (http://www.cafepress.com/spacefuture)
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To: Toddsterpatriot
And yet we still manufacture more than ever. We produce more food than ever.

And yet we import more than ever and import more food than ever. So what?

19 posted on 02/08/2006 8:29:22 AM PST by WatchingInAmazement ("Nothing is more expensive than cheap labor," prof. Vernon Briggs, labor economist Cornell Un.)
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To: hedgetrimmer
I agree America needs a manufacturing base... all we have to do to have one is:

disband the unions
repeal overreaching and burdensome environmental laws
scrap mandatory workers compensation requirements
eliminate the minimum wage
reduce corporate taxation
and pass tort reform.
20 posted on 02/08/2006 8:30:38 AM PST by conservative physics
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